Investors were looking for relief from tariffs. Instead, they got more uncertainty.

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a day ago

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In today's big story, a federal court's ruling against President Donald Trump's tariffs doesn't mean the markets are in the clear.
What's on deck
Markets: An exclusive interview with Wall Street's Dr. Doom about his early success as a money manager.
Tech: Take a look at how much Walmart has previously spent on Azure cloud services.
Business: Airbnb CEO Brian Chesky explains why understanding the differences between founders and managers is key.
But first, it's all still a bit unclear.
The big story
No easy solution
AP
Major indexes jumped Thursday morning thanks to the US Court of International Trade ruling that President Donald Trump didn't have the power to impose some of his wide-reaching tariffs. Whiplash ensued less than 24 hours later when an appeals court reinstated the tariffs while it reviewed the administration's arguments.
Even if Trump's tariffs are ultimately ruled illegal, the risk of a trade war remains. After Wednesday's initial ruling, experts told BI's Christine Ji that Trump has other options that could further sow chaos in an already wild trading environment.
Importantly, the entire episode demonstrates the ongoing uncertainty around an issue that has weighed heavily on the market.
The constant threat and subsequent pullback of tariffs have proved a challenge for investors in recent months. Citadel's Ken Griffin went as far as saying you'd have been better off keeping your money on the sidelines, which is not the type of thing people who manage money for a living often suggest.
Donald Trump, as always, is another X factor.
One immediate solution for continuing his trade agenda could be the Trade Act of 1974. I'm sure you're well-versed on that US legislation, but if you aren't, it allows the president to impose tariffs up to 15% for 150 days.
If Trump continues his tariff fight in the courts, that'll further complicate trade negotiations. Will a trading partner take the president's threat of tariffs seriously if he might not even have the authority to implement them?
Stephanie Roth, chief economist at Wolfe Research, also highlighted to Christine the recently popular TACO trade — Trump Always Chickens Out — as another variable. The notion that he won't commit to harder tariffs, along with the court ruling, could push Trump to double down on his agenda.
"There's a possibility he attempts to do some sort of surprise," Roth told Christine.
3 things in markets
1. Wall Street's Dr. Doom takes on money management. Bearish economist Nouriel Roubini launched America Atlas Fund in November. Since its inception, the fund is up 4%, outperforming the S&P 500. Here's how it resists volatility.
2. Goldman Sachs is on defense as it faces "disruptive policy" shifts. Amid President Trump's trade war and policies, Goldman President and COO John Waldron said the bank is tamping down risk. For him, tariffs are just one piece of the puzzle, though.
3. What top Tesla investors want from Elon Musk. Now that Musk is leaving Washington, a group of the EV maker's investors drafted a list of requests for the tech billionaire. Items include a 40-hour-per-week commitment to the company and a CEO succession plan.
3 things in tech
1. Cleaning up "The Everything Store." A document revealed Amazon's plan — discreetly called the " Bend the Curve" program — to purge at least 24 billion unique product listings from its marketplace. Axing underperforming items can save the company millions in server costs.
2. Microsoft and Walmart are cozier than previously thought. Last week, Microsoft's AI security head accidentally leaked details about its partnership with Walmart. Then, a separate document viewed by BI shows Walmart has spent about $580 million on Microsoft Azure's cloud services between June 2023 and May 2024, which could make it one of Microsoft's biggest cloud customers.
3. One of Nvidia's most important numbers doesn't have a $ attached. Token growth lets the chip giant know how much people are actually using AI and, therefore, its chips. It was a big propeller of Nvidia's Q1 earnings beat, but it's also pretty tricky to track.
3 things in business
1. Mark Zuckerberg and Palmer Luckey are cool now. The foes-turned-friends are teaming up for a US military project, building extended reality gear for soldiers. The Meta-Anduril system, Eagle Eye, will use AI and sensors in headsets and other wearables to enhance vision, Luckey said.
2. How is a business like a baby? Founders are like parents, Airbnb CEO Brian Chesky said on a recent podcast appearance. Chesky said founders have the authority to make big changes and know their metaphorical business baby better than anyone. They also run into two big challenges.
3. The Great Flattening isn't confined to Big Tech. As companies face recession fears and tariff uncertainty, middle managers are at risk. Amazon and Google already announced plans to cut thousands of workers, and now retailers like Walmart are aiming to " remove layers and complexity."
In other news
Costco is taking a page from Sam's Club's playbook to speed up checkout at warehouses.
Tiger Global, more than two years removed from its 56% loss in 2022, walks investors through what's changed — and compares the firm to Rory McIlroy.
Starbucks is scaling back one of its popular point perks.
Reid Hoffman says AI can't be your friend — and pretending it can is harmful.
The taboo colon cancer symptom millennials are afraid to tell their doctors about.
At Diddy trial, his consensual-sex defense is undercut by a personal assistant's wrenching rape testimony.
Elon Musk's right-hand man is leaving DOGE, too.
What's happening today
The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.